Chapter 28Creditors’ Rightsand RemediesN.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.NA question new to this edition of the Test Bank.+A question modified from the previous edition of the Test Bank,=A question included in the previous edition of the Test Bank.TRUE/FALSE QUESTIONS1.A mechanic’s lien can be enforced to obtain payment for work that adds value to personal property.ANSWER:FPAGE:568TYPE:=2.A creditor with a mechanic’s lien on property can sell the property to satisfy the debt.ANSWER:TPAGE:568TYPE:+3.A debt does not have to be past due before a creditor can begin legal action against a debtor.ANSWER:FPAGE:568TYPE:=4.An artisan’s lien is effective only if a creditor has possession of the property.ANSWER:TPAGE:569TYPE:=25

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CHAPTER 28: CREDITORS’ RIGHTS AND REMEDIES 275.An attachment is a court-ordered seizure and taking into custody of property prior to the securing of a judgment for a past-due debt.ANSWER:TPAGE:569TYPE:=6.If a debtor will not pay a judgment, a creditor can only resort to “self-help” to collect.ANSWER:FPAGE:569TYPE:=7.A court may not order an employer, as a result of a garnishment proceed-ing, to turn over a debtor-employee’s property to pay a debt.ANSWER:FPAGE:570TYPE:=8.The law limits the amount of money that can be garnished from a debtor’s weekly take-home pay.ANSWER:TPAGE:570TYPE:+9.A mortgagee has the right to seek a judicial sale of the mortgaged property on the mortgagor’s default.ANSWER:TPAGE:572TYPE:N10.To foreclose on real property securing a mortgage, the mortgagee must ask a court for a deficiency judgment.ANSWER:FPAGE:572TYPE:N11.A surety is secondarily liable on an obligation.ANSWER:FPAGE:573TYPE:=12.A surety becomes primarily liable only when a debtor cannot pay a debt.ANSWER:FPAGE:573TYPE:+13.A contract of suretyship must be in writing to be enforceable.ANSWER:FPAGE:573TYPE:=

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28TEST BANK 1—UNIT SIX: CREDITORS’ RIGHTS AND BANKRUPTCY14.Under a guaranty contract, the guarantor is permitted to be responsible for only a single transaction.ANSWER:FPAGE:574TYPE:=15.Before the guarantor of a debt can be required to answer for the debt of a debtor, the debtor must have defaulted on the underlying obligation.ANSWER:TPAGE:574TYPE:N16.A release by the creditor of the principal debtor, without the consent of the surety, will, without more, release the surety.

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